Most of the time, if you're the buyer, and the listing agent tells your agent information about the other offers, it's a good thing for you. You get to know if you will even be in the running. It's bad for the existing offers, because you may come in higher than them and that's an "unfair" advantage.
But most likely in your situation, they are creating an auction affect and playing the offers off of each other to secure the higher price for the seller. But that can only take them so far, because the house still has to appraise for that if your lender is going to lend. They are not going to lend more than the property is worth as determined by a licensed appraiser. In that case, the seller will have to bring the price back down to appraised value or the buyer will have to bring in the cash to make up the difference.
We're seeing a lot of this going on where multiple offers are bringing the purchase price, not only well above asking, but above current market value. Feels kind of like it did when we were in an appreciating market. I wonder if we're bouncing off the bottom right now, or is it just a temporary ledge?
Anyway, hang in there. It's a great time to buy, and it seems like everyone now knows it.
Robert Vaughan, CSP
951.963.0163 ext. 1001
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